The new company will be the first in Asia Pacific to offer brokerage houses in the region with technology and operational solutions to completely outsource their securities processing and settlement office functions., These services will cover the provision of the whole value chain of securities processing - from order entry to order management, trade enrichment, settlement, custody and will be offered on a modular basis. such as settling trades, managing trade exceptions, reconciling positions and collecting income. The company will offer both Application Service Provider (technology infrastructure outsourcing) and Business Service Provider (operational outsourcing) services, using cutting edge technology infrastructure for end-to-end securities processing. This will enable brokerage houses to lower transaction costs and have access to high quality operational processing while allowing them to concentrate on their core functions of building their customer base and managing customer relationships.
Mr Roy Simpson, Senior Vice President & Head of SGX-ITS, said: "In the face of market deregulation, operational efficiency and cost savings are of immediate concern to brokerage houses in Singapore today. This joint venture is significant as it will allow small and large brokerage houses the opportunity to channel their resources towards building customer relationships and adding greater value to their current product offerings. Furthermore, local brokerage houses will be in a stronger position to compete globally by leveraging on the technology and operational competence brought by this service."
The joint venture brings together the synergistic in-depth experience and knowledge of SGX-ITS, DBS Securities and OCBC Securities in the areas of technology and the capital market industry, to bring reliable and independent solutions to the local market. SGX-ITS' experience in providing IT solutions to the Singapore brokerage community through its flagship Client Accounting System (settlement system) and Vision Broker III - ASP (on-line trading system) will bring a strong technology base to the partnership. DBS Securities and OCBC Securities will bring into the joint venture a detailed knowledge of brokerage operations and an initial guaranteed transaction base to provide critical mass for the business.
DBS Securities' Chairman, Mr Greg Seow, said: "This project was initially mooted by Vickers Ballas, SGX-ITS and OCBC Securities. Following the merger announcement of DBS Securities and Vickers Ballas, we recognized the value of the joint venture to the brokerage industry. The merged entity is committed to the shareholding and the success of the joint venture.
"The joint venture offers the brokerage industry significant economies of scale as a result of the sharing of securities processing and settlement infrastructure costs. DBS Securities, as a major player in the brokerage industry, is pleased to bring to the partnership its operational expertise and regional experience."
Mr Lawrence Wong, Chairman, OCBC Securities said: "The joint venture brings together the depth and breadth of industry experience and understanding of the local market to address the IT needs of the brokerage industry."
The joint venture will develop cutting edge technology platforms, combining selected products SGX-ITS has developed, with technology from global technology vendors to deliver a high quality, reliable and effective solution in the shortest possible time.
Said Dr Kaizad Heerjee, Assistant Chief Executive, Infocom Development Authority of Singapore (Online Development): "We are pleased to see the Joint Venture taking the lead in providing ASP and BSP service delivery to support Singapore's capital markets industry. This is in line with IDA's blueprint for harnessing information communication technologies to increase the competitiveness of Singapore's economy."
The joint venture company's first suite of products will be announced in 3-6 months, and will include business solutions that will enable brokerage houses to engage in multi-market and multi-currency processing.
